REFILE-INSIGHT-Cider, the golden apple of brewers' eyes

BRUSSELS Dec 20 (Reuters) - Almost a thousand years since
the Norman conquest made cider popular in Britain, brewers are
launching cider invasions of their own, with the United States
the main battlefield.

Cider, or hard cider as Americans call it, promises growth
in developed markets at a time when consumers are drinking less
beer but are willing to pay more for premium products, such as
independent "craft beer", flavoured lagers or indeed cider.

It tends to draw drinkers away from wine rather than eating
into beer sales, attracts more women than does beer and commands
a higher profit margin.

In volume terms, cider is only about 1 percent of the beer
market, but prices are much higher. The United States accounts
for about a fifth of global beer sales of $500 billion a year,
so each percentage point increase there for cider could add well
over $1 billion to the total revenue of cider makers such as
world number one Heineken and number two C&C.

While increasing wealth makes emerging markets a bright spot
for brewers, beer consumption in Europe and North America has
been in decline for years and is expected to keep falling.

"Mass-produced beers have suffered due to the surge of craft
beers in the United States ... Big brewers feel the threat.
Cider could be the escape hatch," said Spiros Malandrakis,
senior drinks analyst at market research group Euromonitor.

While they may be drinking less, consumers are willing to
pay more for premium long drinks such as cider, which has
spurred a flurry of acquisitions and product launches.
Continued...